DP World Limited has announced strong financial results for the year ended 31st December 2022. On a reported basis, revenue grew 58.9% to AED62,89 billion ($17,127 million).
The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew 31% to AED18,41 billion ($5,014 million) with adjusted EBITDA margin of 29.3%.
In a statement to Emirates News Agency (WAM), DP World announced that revenue increased by AED23,31 billion ($6,349 million) to AED62,89 billion ($17,127 million) — (Revenue growth of 58.9% on a reported basis).
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The revenue growth of 58.9% was supported by acquisitions and like-for-like revenue growth driven by the solid performance of Ports and Terminals, and Marine Services.
The company reported that containerised revenue increased by 12.1%, driven by higher demand for ancillary container services. Like-for-like non-containerised revenue is up 18.3%, with a strong performance from “Unifeeder” due to improved average freight rates.
DP World also reported that Adjusted EBITDA increased by 31% to AED18,41 billion ($5,014 million) on strong revenue growth, and EBITDA margin for the year stood at 29.3%. Like-for-like adjusted EBITDA margin stood at 37.2%.
The broadening of strategic partnerships strengthened balance sheet and drove long-term value in addition to broadening of partnerships and monetisations to rose over AED29,38 billion ($8 billion) to significantly strengthen balance sheet and provide long-term flexibility.
The partnerships with Caisse de dépôt et placement du Québe (CDPQ) and Hassana Investment Company (Hassana) partnerships in UAE raises AED27,17 billion ($7.4 billion) to help capture the growth potential of the wider region.
Also, the expansion of National Investment and Infrastructure Fund (NIIF) India partnership and new partnership with the UK’s development arm British International Investment (BII) to rose approximately AED2,20 billion ($600 million).
DP World also announced robust cash generation and a stronger balance sheet on asset monetisations, with cash generated from operating activities increased by 20.6% to a record AED16,34 billion ($4,451 million) in 2022, compared to AED13,55 billion in 2021 ($3,692 million).
The leverage (Net debt to adjusted EBITDA), on a pre-IFRS16 basis, declines to 2.7x (FY2021: 3.7x), due to improved profitability and lower net debt. On a post-IFRS16 basis, net leverage stands at 3.0 times compared to 4.2 times in FY2021.
DP World’s credit rating improved by one notch by Moody’s to Baa2 with Stable Outlook on improved financial performance and a stronger balance sheet. Fitch credit rating improved to Positive outlook with BBB- rating.
DP World is committed to a strong investment grade rating in the medium term.
In terms of felective investment in key growth markets, the capital expenditure of AED6,29 billion ($1,715 million), compared to AED5,11 billion ($1,393 million in 2021) was invested across the existing portfolio.
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Capital expenditure guidance for 2023 is for approximately AED6,24 billion ($1.7 billion) to be invested in the UAE, Jeddah (Saudi Arabia), London Gateway (United Kingdom), Dakar (Senegal), Banana (Democratic Republic of the Congo), Callao (Peru) and DPW Logistics (South Africa).
DP World enhanced revenues through transformation of business to drive revenue synergies and long-term relationships with cargo owners. The enhanced logistics portfolio offers value-add capabilities in fast-growing markets and verticals.
DP World said that it aims to deliver supply chain solutions to cargo owners by leveraging its best-in-class infrastructure across logistics, ports and terminals, marine services and digital.
The company announced that it is committed to transition to net zero in line with the UAE 2050 Initiative as decarbonisation remains a core focus. DP World is committed to investing more than AED1,83 billion ($500 million) to reduce CO2 emissions by 700k tonnes in the next 5 years.
DP World was recognised as a top performer by Sustainalytics, and achieved A- (Leadership) rating by CDP Climate Change.
DP World Group Chairman and CEO Sultan Ahmed bin Sulayem, commented, “We are pleased to announce that DP World achieved record results in 2022, with our adjusted EBITDA rising by 31.0% to exceed AED18,41 billion ($5 billion). Our continued focus on high-margin cargo and end-to-end supply chain solutions is the key driver of these results, and we believe this strategy will continue to yield sustainable returns over the long term.
“In 2022, we focused on strengthening the balance sheet and raised over AED29,38 billion ($8 billion) through asset monetisations. This programme and new partnerships will allow us to continue to drive growth in our portfolio. Furthermore, the fresh capital also provides capacity and flexibility to invest in key growth markets while maintaining an investment grade rating. ”